The Hangzhou local police reportedly raided another cryptocurrency project in China, shutting down the offices of the GXChain (GXC) project, according to Dovey Wan, founding partner of Primitive Ventures.
Dovey Wan tweeted Wednesday, that “Another high profile 2017 ICO project GXChain $GXC just got clamped down by the Chinese police.”
She revealed in a subsequent video tweet that the office was emptied and sealed, a strange development she said, based on the fact that the GXChain ICO project was a notable and legitimate one.
Dovey said, “I have no idea why the police took action against GXchain instead of 10000 other Chinese scams, as GXchain has a real business behind.”
Although no specific reason was stated regarding development, she, however, suggests that GXChain raid could be related to their data business. They sell processed personal credit data, which is a highly sensitive area in China, she noted.
While the crackdown of crypto-related businesses in the Republic of China is still unclear in terms of the government’s intention, a more recent update from Dovey notes that all the executives of GXchain have been taken into custody by the police for necessary interrogation.
Created by the Korea Power Exchange (KPX), GXC uses the Delegated Proof of Stake (DPoS) consensus. The all-time high price of GXC so far was $10.38 on January 13, 2018.
“GXChain was a very hot ICO back in the days with ATH market cap over $600M (even now still holds $48M) and considered to be among the very few legit ICOs,” according to Dovey.
Still on the patriotic duty of the Chinese police to regulate cybercrime, 13 Chinese men in Zhenjiang, was held in police custody for allegedly stealing 20 million yuan (appr. $3 million) worth of electricity to mine Bitcoin. As reported by Coinfomania, investigations into the matter began after the Zhenjiang electricity authority recorded an unusual spike in voltage and insufficient power supply in some local factories.